Sauces, Dressings and Condiments in Japan

2020 IMPACT

Some categories see sales boosted by stockpiling

Some sauces, dressings and condiments categories have seen strong growth thanks to the stockpiling and home seclusion occurring during 2020. Pasta sauce, for example, saw a number of products sell out during the state of emergency due to COVID-19, as consumers stocked up.

Increase in home cooking drives growth

The increase in cooking at home during the COVID-19 pandemic has boosted demand for cooking sauces in 2020, as consumers have looked to minimise the time and effort spent on the preparation of meals. Manufacturers such as Ajinomoto have prioritised the production of cooking sauce products to meet this increasing demand.

Kewpie retains lead despite share erosion

Kewpie Corp is the leading player in sauces, dressings and condiments, thanks primarily to its strong presence in mayonnaise and salad dressings. Changing consumer attitudes to eggs and oil are boosting sales of the company’s mayonnaise products.

RECOVERY AND OPPORTUNITIES

Potential for time- and effort-saving products

Products capable of saving consumers time and effort in the preparation of meals will remain popular over the forecast period. Indeed, the return to more normal social and economic activity will increase the time pressures on many consumers.

Private label segment has opportunity to tap into increasingly price-conscious demand

The significant economic impact of measures to contain COVID-19 is expected to endure well into the forecast period, leading to a consumer shift towards less expensive products, including private label products. Private label has particularly significant potential in categories in which consumers have less strong preferences or sensitivity in the matter of taste.

Health-consciousness to remain a key influence

The rise in consumer health-consciousness has become a prominent influence across packaged food in Japan, and COVID-19 has provided a boost to the health and wellness trend, encouraging more consumers to aim to eat healthily. Oil has gained a more positive image amongst health-conscious consumers as awareness of the important role of fat in a healthy diet has increased and consumers have become more knowledgeable about different types of fat.